Macau faces complex test as it diversifies economy, analysts say

A university study says Macau faces a complex transition away from the gaming industry.

Macau.- A study conducted by scholars from the Shanghai Cooperation Organisation Research Institute, Shandong University and the University of Macau says Macau faces a complex test as it moves away from relying on gaming revenue from Chinese high-rollers. The paper, jointly compiled by Edmund Sheng Li, Zhang Anning, and Yin Yechang, highlights the need for Macau to address social issues that had been overlooked.

The economic downturn caused by the Covid-19 pandemic and Beijing’s push to reform the gaming sector had made it “impossible” for Macau authorities to maintain the status quo or implement reforms slowly, the study noted. However, the development of emerging industries, especially those in cooperation with Hengqin, such as finance, healthcare, tech, exhibitions sports and culture, need more government investment.

Under new concessions, the city’s six gaming operators have pledged to invest US$15.2bn in non-gaming projects over the next few years.